You get your advance of say $800k to record your album...the other $1.2 million they keep for
- Mixing and Mastering
- Marketing promo to radio/TV/magazines
- Sample clearances
- Legal on collaborations
- Video production
- Packaging and shipping your album
The label doesn't get $ 6 million.. they get $ 3 million due to selling wholesale to distributors
or in Apples case $ 4.2 million
Now you are probably thinking oh it's all good
Hold up n!gga....
They still loaned you $2 million and expect repayment from your portion of the proceeds
So if your cut is 50 cents -$1 a CD and you sell 500k, your cut = 250k- 500k
You still owe the label 1.5 - 1.75 million ...so they'll grab a cut of your tour revenue/publishing to recoup
but you need to tour and guess who
lends you that money for support ?
You guessed it......
Cash Money baby where dreams come true